Don't Cut Down That Tree!

Any homeowner wishing to cut down a tree with a trunk more than 24 inches in diameter must get the City of Austin's permission. If your tree is less than 24 inches in diameter, you must apply for a permit, but a variance is required for trees with a trunk more than 24 inches in diameter, according to new rules put in place by the Austin City Council in February, 2010.

According to the new rules, homeowners wishing to cut down the larger trees must prove that the tree is dead, badly diseased or "an imminent hazard to life or property" that cannot be mitigated. If the variance is granted, homeowners must pay $75 per diameter inch to a city tree-planting fund and must plant new trees in it's place. I did say trees, as the new code specifies that the width of the trunks of the replacement trees must equal three times the diameter of the felled tree. That means twelve 6-inch diameter trees to replace a 24-inch tree.

Think you can get around it? If you illegally cut down the tree, you can be fined $2000 and be charged with a Class C misdemeanor.

Usually, this is not a desire or a problem for most homeowners, but what happens when the tree's root system is causing major structural damage to your home? The city usually requests an engineering and an arborist report of possible "fixes" before granting a variance. Less than a quarter of requested variances are granted.

What this means to you as a buyer is that you must be extra diligent when selecting a home. Check out the trees surrounding the home and make sure that roots are not uprooting sidewalks and patios. Bring a tape measure to figure out the diameter of any problem trees. Your due diligence could keep you from a costly repair later.

Gap Between Owning and Renting is Lowest in 20 Years!

You heard right. According to the Associate Press, the gap between month rents and mortgage payments is at its lowest level since 1990. In some markets, the difference is less than $100 per month.

According to a study by Marcus & Millichap Real Estate Investment Services, the narrowing in the gap is attributed to years of falling home prices and low interest rates. It's the ultimate buyer's market!

$8000 Tax Credit Extended...for some There are new benefits for members of the military and certain other federal employees: Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. ---Abundance Home Mortgage